IFA firms are focusing on acquisitions while approaching mergers with more caution as data shows 9 per cent of Independent Financial Adviser (IFA) firms have acquired other businesses since December 2024, while 5 per cent have merged in the same period.
According to Opinium’s latest IFA Barometer, the data highlights a rising trend in acquisitions with the percentage of firms making purchases increasing from 5 per cent in February 2024 to 6 per cent in September 2024, reaching 9 per cent by December.
Meanwhile, merger activity has remained stable, with 5 per cent of firms reporting mergers since September 2024, indicating no significant change.
The report also reveals a clear trend of smaller IFA firms exiting the market, as 17 per cent of sole traders have sold part or all of their business in the past year.
Opinium global head of financial services Alexa Nightingale says: “Smaller adviser firms are clearly leaving the market, whilst the strategic shift towards acquisitions reflects the increasing focus on growth and consolidation across the sector.
“The rising number of acquisitions is a signal of confidence among larger firms to expand their reach, while smaller firms seek exits or transitions. These trends will shape the future landscape of the IFA sector and its ability to deliver comprehensive services to clients.”
